FCA opens crypto authorisation applications ahead of 2027 rules
The FCA has opened its crypto authorisation window, giving UK firms until 28 February 2027 to apply before wider rules take effect in October.
The UK’s Financial Conduct Authority (FCA) opened applications for crypto firms on 30 September, starting a five-month window to seek permission under a broader regulatory regime due to begin in 2027. The regulator says firms must apply by 28 February 2027 if they intend to keep carrying out the new regulated activities in the UK. It expects the new rules to take effect on 25 October 2027.
The FCA set out the dates in its announcement that the crypto authorisation gateway is open. Firms apply through the FCA’s Connect system. Existing firms already authorised for other financial services can apply to add crypto permissions to their existing approval.
Who needs to apply under the new rules?
Crypto firms that want to carry out the new regulated activities will need authorisation under the Financial Services and Markets Act 2000 (FSMA), the UK’s main financial services law. This includes businesses already registered under the Money Laundering Regulations (MLRs), which cover anti-money laundering checks. The FCA says that registration will not convert automatically into the new authorisation.
The rules cover a wider range of crypto activities than the current registration system. The FCA’s guidance includes services such as operating trading platforms, dealing in cryptoassets, safeguarding them for customers and arranging staking. Staking is the process of committing certain cryptoassets to help run a blockchain network.
What happens if an application is still pending in October 2027?
Firms that apply during the window can continue providing crypto services while the FCA assesses their applications if no decision has been made by the regime’s start date. The FCA says this also covers taking on new business, under the regime’s saving provision.
Applying does not guarantee approval. The regulator says firms will have to show that they meet its standards for consumer protection, safeguarding customer assets, market integrity and financial resilience. It expects to decide applications submitted during the window before the new rules begin.
What if a firm misses the February deadline?
The FCA’s guide to how the application gateway works says firms can still apply after 28 February, but the regulator will not speed up its review because an application arrived late. If a late applicant has not received authorisation by 25 October 2027, it will face tighter limits while waiting: it can generally serve existing contracts but cannot make new contracts with UK customers.
Firms that do not apply must wind down their UK crypto business before the new regime starts. The FCA says they will not be covered by the arrangements that let applicants continue operating during review. The regulator has not said how many firms are expected to apply or how many will meet its standards.